One prominent analyst is now noting that the recent market-wide bearishness has led BTC to break below a critical trendline that must be recaptured by bulls in the near-term.
This means that the next several days and weeks will be critical for determining Bitcoin’s mid-term trend, as a failure for it to recapture this level will open the gates for significant downside in the months – and even years – ahead.
Bitcoin Stabilizes Above $5,000 as Traditional Markets Rebound
In the time following the global bloodbath seen on Monday, Bitcoin and the equities market has been able to recoup some of these losses.
At the time of writing, Bitcoin is trading up just under 6% at its current price of $5,300, which marks a notable upswing from daily lows of $4,600 that were set at the bottom of yesterday’s market session.
In the near-term, Cold Blooded Shiller – a popular cryptocurrency analyst – is warning that BTC is flashing signs of forming a long-term top formation, and that this will be confirmed if the crypto sees any further near-term downside.
“This is the picture that has my interest at the moment on BTC. I’m waiting for confirmation of weakness from the last move up. This would be confirmed on any further downside action. Given the parameters of this chart, I’d consider this a strong signal for a localized top,” he noted.
This is the picture that has my interest at the moment on $BTC. I’m waiting for confirmation of weakness from the last move up. This would be confirmed on any further downside action. Given the parameters of this chart, I’d consider this a strong signal for a localised top. pic.twitter.com/e4O66T7zWm
— Cold Blooded Shiller (@ColdBloodShill) March 17, 2020
BTC’s Future Will Be Determined in the Coming Days and Weeks, Claims Top Analyst
CryptoBirb, another highly respected cryptocurrency analyst and trader on Twitter, spoke about Bitcoin’s recent macro price action in a tweet, explaining that it recently fell beneath the lower boundary of a nearly decade-long trendline.
“BTC is dead, will never recover narrative is easily told by extreme fear sentiment. Nothing bullish about breaking trendline, while investors monitor trends (directional movements) over trendlines. Trends may include deviations. Next weeks will define the future for all of us,” he noted.
$btc is dead, will never recover narrative is easily told by extreme fear sentiment. Nothing bullish about breaking trendline, while investors monitor trends (directional movements) over trendlines. Trends may include deviations. Next weeks will define the future for all of us
pic.twitter.com/BNWHhXUqKa
— Crypto₿irb (@crypto_birb) March 17, 2020
If it sustains below this trendline in the weeks ahead, it could be a dire sign for what’s to come next for the crypto.
Featured image from Shutterstock.